U.S., Canada End Beer Fight

The United States and Canada tentatively have ended a beer dispute that had caused diminished sales of U.S. brands in Canada and produced threats of U.S. duties on imported Canadian beer.

Under the agreement reached Saturday, the Canadian government--which sets minimum beer prices--would halt practices by June 30 that drive up the price of U.S. beer, said Malcolm McKechnie, spokesman for the Canadian Embassy. Canada will also eliminate other marketing barriers, he said.

In return, the United States has agreed to rescind plans to place a tariff on imported Canadian beer that would have been retroactive to April 13.

The threat of the duties had slowed shipments of Canadian beer into the United States. Because of the dispute, the province of Ontario stopped buying American brands. Canadian provinces regulate beer sales.

“Normal trade in beer between the two countries resumes today (Sunday),” McKechnie said.

Julius Katz, acting U.S. trade representative, hailed the tentative accord and said, “I believe the details of the final agreement can be reached expeditiously.”

Officials will meet as early as next week to work out final details.

The two nations have long bickered over restrictions each says the other places on imported beer.

About $170 million worth of Canadian beer is sold each year in the United States, about 1% of the U.S. market. Canadians buy about $30 million worth of U.S. beer, 3% of the Canadian market.